Singapore economy grew by 1.2% in 2012: PM Lee

Singapore’s economy grew by 1.2% in 2012, hurt by weakness in the West and Japan as well as problems faced by some local companies in hiring workers, Prime Minister Lee Hsien Loong said on Monday.

“Growth was slower this year, at 1.2%. The weak US, European and Japanese economies dampened our growth, but some industries have also had difficulty hiring the workers they need to grow,” Lee said in his New Year message.

“Next year we expect to grow by 1-3%. In our new phase, we must expect slower growth than we have become accustomed to,” he added.

In 2011, Singapore’s economy expanded 4.9%. The 1.2% growth for 2012 cited by Lee is below the official forecast of around 1.5%.

It also suggests Singapore’s economy likely contracted in the fourth quarter on a seasonally adjusted and annualised basis, pushing the economy into a recession as the economy had also contracted in the third quarter.

The government will release advance estimates for the fourth quarter on Jan 2.